Elomatic and Wellquip merge offshore business operations

Joint venture company aims for growth in arctic market

Elomatic has acquired a share of technology firm Wellquip Ltd. As a result of combining their business operations an internationally significant player in the offshore business has been formed in Finland. The company's core knowhow is offshore and oil and gas production solutions. The company will continue to operate under the Wellquip name and aims in particular to achieve growth in the arctic marine business in the Russian and Caspian Sea markets.

Wellquip provides offshore technology and oilfield solutions and services. The company has extensive experience of the Russian and Central Asian markets.

The joint goal is to develop both Elomatic's and Wellquip's business operations. The joint venture company created is Finland's first world class operator that serves the oil and gas industry both on land and at sea.

Wellquip is the only Finnish company operating in oil and gas production and services, which also has the top know-how required in the offshore sector. The technology it develops currently produces about 8000 barrels of oil a day in its customers' oil fields. Wellquip employs highly experienced professionals in the field that have strong networks and the required language skills in the Russian market. These are significant success factors in this field, says Elomatic Marine & Offshore Business Unit Manager, Heikki Pöntynen.

To be successful in the oil and gas sector requires solid and diverse engineering know-how and sufficient resources. Together we are stronger and we are able to deliver larger entities, says Wellquip Managing Director, Sakari Oja.

Elomatic and Wellquip have in recent years cooperated actively in different business areas. They have, among others, founded a joint venture company, Caspian Offshore Solutions, in Astrakhan Russia with a Russian partner. Elomatic and Wellquip are also currently undertaking a joint engineering project for a Caspian Sea jackup vessel.

According to the agreement Elomatic will initially acquire a significant minority share. Elomatic has the option to acquire a majority share in Wellquip during 2014.